Even If Production Costs Are Higher in a Foreign Country

question 49

Multiple Choice

Even if production costs are higher in a foreign country, a U.S. firm may establish a manufacturing plant in the foreign country now if:

• A) the host government of that country eliminates all quotas.
• B) the host government of that country reduces all quotas.
• C) the host government of that country increases all quotas.
• D) the host government of that country eliminates all tariffs.

---

Definitions:

Ethnic Minorities

Groups within a larger society that have distinct cultural, linguistic, or racial characteristics different from the majority population.

Teen Pregnancy

A situation where a female becomes pregnant during her teenage years, frequently associated with socio-economic and educational challenges.

PhDs

Doctoral degrees awarded by universities to individuals who have completed original research in a specific field of study, demonstrating expertise.

Ethnic Minorities

Groups of people who differ in race, national origin, or culture from the majority population in a society.